Brazil denies suspending home subsidies, as policy signals blur
Last edited Sat May 21, 2016, 05:40 PM - Edit history (1)
Brazil denies suspending home subsidies, as policy signals blur
SAO PAULO: Brazil's government denied plans to suspend a popular housing subsidy on Friday, as the cities minister became the latest member of interim President Michel Temer's cabinet to walk back reported policy changes in a hasty transition.
The minister, Bruno Araujo, pledged to maintain and "improve" the program, backpedaling public comments just as the ministers of justice, health and education have done this week. The flaps have confused policy messages from the new administration, which is planning ambitious economic reforms and renewed austerity, but remains provisional while Rousseff is tried in the Senate for allegedly breaking budget rules.
She stepped aside last week to face trial, but has denied wrongdoing in the case, which could take up to 180 days. One of Brazil's biggest newspapers, O Estado de S. Paulo, reported on Friday, citing an interview with the minister, that the government had suspended housing program Minha Casa Minha Vida during a 40-day review.
"Under no conditions would we talk at this point of suspending the Minha Casa Minha Vida program," Araujo said in a statement published by the ministry. "What we are doing is being cautious, evaluating what we can promise to avoid false hopes." Shares of MRV Engenharia SA, the biggest homebuilder in the low-income housing programme, dropped nearly 8 percent in early trading before paring losses to 1 percent as the minister waved away concerns.
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http://dailytimes.com.pk/business/22-May-16/brazil-denies-suspending-home-subsidies-as-policy-signals-blur
